Chase Puts Limits on Debit Cards Used at Target

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Dec. 23 (Bloomberg) -- Strategic Group's Burt Flickinger and Citigroup Global's Steven Englander discuss the credit and debit card security breach at Target. They speak on Bloomberg Television's "Bloomberg Surveillance." (Source: Bloomberg)

Yesterday opened a bunch of banks so people could take out some cash.

When my dad and i first developed -- cochaired the first taxsk force with the first-ever card.

It -- first debit card.

It is the same cassette tape magstrip.

When we developed the system 35 years ago, 90% of transactions were done in cash.

As you are saying, it is damaging for people.

35-year-old technology has not changed -- in america.

Everywhere else, they have gone to chip.

It is ubiquitous for technology.

Between the issuing and the acquiring banks, visa, master, discover, general-purpose credit card companies and retailers, they have refused to invest.

Target is going to be looking at lawsuit litigation contingency reserves of $0.5 billion two point $5 billion.

And many more companies will have -- 0.5 -- contingency reserves of $0.25 billion to $.5 billion.

Customers have less money to spend.

Is it something to and sent these companies to do this, we are moving to make your card more secure?

They are making the card more secure, but greed is unprecedented.

I the credit card companies, my dad and i started and it was five cents per swipe for online debit, and 15% for debit.

Now it is two dollars per transaction.

Insane.

$30 billion out there in undeserved profit.

Bringing in steve englander, we have a way -- a currency that has no inner charge fees.

It has almost total security, especially compared to the weakness of -- bitcoin.

Secure by the entire network.

Bitcoin bull.

Why don't more people adopt bitcoin?

It is so secure and so free and so instant.

I think the security at the point of transaction, .2 point.

-- point to point, bitcoin wallets, bitcoin exchanges, there has been a fraud and security seems very well.

When you are transacting you are secure, but when you are holding the wallet it seems -- that is a vulnerability.

It is no more formal than holding cash in your wallet.

People have wallet stolen every day.

But is your entire bank account.

No one with a lot of money in bitcoin keeps it all in one wallet.

You have a wallet you spend.

You keep real money, as you would with cash, in a vault.

Real money!

Defaults are very hard to access.

-- the vaults are very hard to access.

We know how to manage cash and avoid pickpockets and so on.

There is still a lot of experimentation with bitcoin.

It would be very hard to get the man on the street to feel comfortable and to be secure carrying a bitcoin wall around and spending it.

It took me a few days.

We will see.

Maybe target should look into it, they have had trouble convincing people to go back into their stores.

10% off.

Our team later in the midwest said they did not even have signage and the stores telling shoppers about the accounts.

Public relations fail.

We will keep discussing this throughout our.

This text has been automatically generated. It may not be 100% accurate.

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